Boeing to Supply 767's for DHL US Operations

[abxaviator]

What I said was that given recent developments, DHL might well be considering farming out their U.S. distribution to either FedEx or UPS in exchange for some assistance in accessing markets currently served by DHL International.

Think about it. For all their foibles, DHL is still the undisputed "Big Dog" in many foreign countries. It's here that their service sucks, and it's here that they're hemmoraging money.

Meanwhile, FedEx and UPS have a virtual lock on making reliable overnight connections between any 2 mailboxes (or doorways) here in the United States. Should either one team with DHL, it would accelerate that company's presence in the International market by at least 5 years. I don't know if that's what DHL is hoping will happen, but it would explain their resistance to investing in infrastructure here.

As for the -300's, it's a sure bet that ABX won't get them because they have cargo doors, and Astar won't get them because they're new.

So, let me be sure I understand. DHL is going to line UPS or FDX coffers by hiring them for US distribution AND help one of them to compete with DHL internationally!?! Barkeep! I'll have what he's having!!

As for the cargo doors, all our recent and future deliveries have doors, but you knew that.

 

[Browntothebone]

http://www.airlinepilotforums.com/showthread.php?t=6069

My prediction for how the integrator industry will shake out within the next 2 to 15 years, i.e. at some point after Open Skies goes through and Fred Smith steps down:

1. DHL http://www.dpwn.de/dpwn?tab=1&skin=h...File=20 06675 will acquire FedEx to gain instant market share in the US.
2. UPS will have to counter by acquiring TNT http://www.tnt.com/.

or:

1. UPS will acquire TNT http://www.tnt.com/.
2. DHL will have to counter by acquiring FedEx.

Long term there is not room for 3 integrators and the Coke and Pepsi of express volume will end up being DHL and UPS. Schenker http://www.schenker.com/english/company/index.html will eventually also be absorbed by either DHL or UPS.

 

[penguin22]

What I said was that given recent developments, DHL might well be considering farming out their U.S. distribution to either FedEx or UPS in exchange for some assistance in accessing markets currently served by DHL International.

Think about it. For all their foibles, DHL is still the undisputed "Big Dog" in many foreign countries. It's here that their service sucks, and it's here that they're hemmoraging money.

Meanwhile, FedEx and UPS have a virtual lock on making reliable overnight connections between any 2 mailboxes (or doorways) here in the United States. Should either one team with DHL, it would accelerate that company's presence in the International market by at least 5 years. I don't know if that's what DHL is hoping will happen, but it would explain their resistance to investing in infrastructure here.

As for the -300's, it's a sure bet that ABX won't get them because they have cargo doors, and Astar won't get them because they're new.

Yes, yes! Of course you're right!! We're all Doomed !!


DOOMED !!

 

[Whistlin' Dan]

So, let me be sure I understand. DHL is going to line UPS or FDX coffers by hiring them for US distribution AND help one of them to compete with DHL internationally!?!

I suppose you could characterize it that way. But I think it would be more accurate to say that DHL would become a partner of UPS or FedEx, either through an outright purchase/merger or through some form of "strategic alliance" as previously mentioned. The latter would see both companies retain their respective corporate identities, which would ease any concerns that might be raised about "foreign ownership." Such an arrangement would allow both companies to focus on their core areas of expertise, that being International (DHL) and domestic (FedEx/UPS). DHL never capitalized on the explosive growth of overnight express in the 80's and 90's, and even if they were to spend the 3-5 billion dollars it would take to become competitive, it's unlikely they could make any significant inroads into the domestic market now. That ship has sailed...

Both UPS and FedEx have major hubs on both the east and west coasts that are fully capable of handling distribution of the international product anywhere in the continental United States. The domestic product would be routed through Louisville (or Memphis) as they are now.

And what would Polar's role be in all this, you ask? They would be there for the same reasons they are now...to keep some downward pressure upon, and a back-up labor force to, whatever company DHL partners with. Who knows...maybe ABX/Astar would be kept on "life-support" for similar reasons?

Please, I'm not trying to "prophesize doom" here, just point out some areas of exposure that the pilots of both ABX and Astar face in the near future. The guys at Astar have had sunshine blown up their a$$es for years, and are only now realizing that their continued presence in the DHL system is about as assured as that of "Moe," the guy who reloads the snack machine in the employee cafeteria every Tuesday.

 

[Whistlin' Dan]

Yes, yes! Of course you're right!! We're all Doomed !!

Well, yes, it IS possible.

Cranio-rectal insertion HAS been known to cause death in pilots.

 

[ABXbooger]

Why would they replace the A300's with 767-300's? Not exactly an apple to apple thing? If the buses were running international now, I would think that, but they aren't and never have. So replacing the buses with the 767-200's and then using the 767-300's for international, regardless of who flys them.

I do think ABX has the inside track on these planes, though. As previously stated, basically all they have to do is show up and we could fly them, spares, training, MX, etc all turnkey. But, Joe is pulling planes away from DHL to go to Japan, they (DHL) might take that as a slap...

 

[abxdx]

But, Joe is pulling planes away from DHL to go to Japan, they (DHL) might take that as a slap...

I do not think Hete is pulling away any planes from DHL, the new ones coming online will go to Japan. We are not forfitting any of our flying for DHL to do this contract...

 

[Whistlin' Dan]

Why would they replace the A300's with 767-300's? Not exactly an apple to apple thing? If the buses were running international now, I would think that, but they aren't and never have. So replacing the buses with the 767-200's and then using the 767-300's for international, regardless of who flys them.

You're right, 767-300's aren't a direct replacement for anything in DHL's domestic service except maybe the DC-8, and they're not utilizing those to any great extent. The -300's will be utilized overseas, flown by whichever ACMI operation submits the lowest bid. Maybe "Air Chihuahua" or somebody. Just because DHL can no longer employ illegals in the sort doesn't mean they couldn't use them to fly their planes. What happens in Kazakhstan stays in Kazakhstan, know what I mean?

I do think ABX has the inside track on these planes, though. As previously stated, basically all they have to do is show up and we could fly them, spares, training, MX, etc all turnkey. But, Joe is pulling planes away from DHL to go to Japan, they (DHL) might take that as a slap...

Nobody reading this post in their native language has an inside track on these planes. The closest any of us will get to them is when we're riding the jumpseat, if that's even possible. Assuming the reported value of the contract (150 mil per unit) is correct, it's fair to assume that a comprehensive spares and training package is included with the deal. Plus, they're new airplanes, and Boeings at that. After a few months shakin' 'em down, they'll be pretty reliable birds for the next 15 or 20 years.

Another thought just occured. Doesn't UPS have a bunch of 767-300's on order? Now THAT would imply some commonality between fleets, in the event that some sort of partnership with them were to be reached in the future. See my above post...

 

[Classicdriver]

Not sure how this will mix in, but DHL has indicated to Atlas/Polar that they will be handling all the trans-ocean flying at some point. Atlas is interested in sharing and flying smaller planes with the right deal? Just another thought. I have no inside info.

 

[abxaviator]

Dan and his alliance theories are beginning to make sense (thanks barkeep). I bet these get painted brown for real commonality.

 

[abxdx]

Not sure how this will mix in, but DHL has indicated to Atlas/Polar that they will be handling all the trans-ocean flying at some point. Atlas is interested in sharing and flying smaller planes with the right deal? Just another thought. I have no inside info.

Where did you read or hear that DHL had indicated this? And how do you know what Atlas is interested in?

 

[abxdx]

You're right, 767-300's aren't a direct replacement for anything in DHL's domestic service except maybe the DC-8,

Are you off your rocker, how could you possibly think that a 767-300 would be a direct replacement for the FLYING Semi........................

 

[Classicdriver]

Where did you read or hear that DHL had indicated this? And how do you know what Atlas is interested in?

From meetings our Union MEC has had with the DLH management and union folks in Germany. Also Atlas has said many times that they are interested in a smaller plane if it was the right situation. In fact, they just mentioned it again in their quarterly report conferance call on Thursday. Also they said in that same call, that the current deal with DHL may be just the beginning.

 

[AV80R]

to fly in the U.S.???

Absolutely! Isn’t that what Open Sky agreement was all about?

After all, doesn’t FedEx and UPS fly within Europe?

Note, I’m not saying I agree with it, I’m just saying people wishing for Open Sky deal need to be careful what they’re wishing for, it might bite them.

 

[tired_pilot]

Rumor that Express.net is in the running the operate the 767's. Rumor and rumor only but from reliable source.